July 7, 2013

Before the General Assembly adjourned earlier this week, legislators
passed a bill that aims to bolster investment in renewable energy and
improve energy efficiency.

The legislation creates a new financing option for homeowners,
allowing those in participating communities to apply for a special loan
for energy upgrades that would become part of the assessment on their
property. Because the loan would ideally increase the property value, it
would stay with the property if it transfers to another owner before
being paid off.

The idea behind the new program, known as Property Assessed Clean
Energy, or PACE, is to remove a barrier to energy improvements. Because
the upfront cost of, say, installing solar panels is high, some Rhode
Islanders may be deterred from making the investment.

But through PACE, a homeowner can invest in a new energy system
without breaking the bank, according to its supporters. The costs are
paid off over 10 or 20 years.

"You would hope that the energy savings would be more than the cost of the lien," said state energy commissioner Marion Gold.